Notes to Accounts of Shah Construction Company Ltd.

Mar 31, 2024

vi) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events
and it is probable that there will be an out flow of resources. Provisions are not recognised for future operating losses.

Contingent liabilities are disclosed when there is a possible obligation arising from past events the existence of which will be confirmed only by the
occurrence or non -occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount
cannot be made.

Contingent Assets are disclosed , where an inflow of economic benefits is probable.
viQ Tax Expense

The tax expense for the period comprises current and deferred tax. Current and deferred tax is recognized in the Statement of Profit and Loss except
to the extent it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized in equity or other
comprehensive income respectively.

Current Tax:

Current tax charge is based on taxable profit for the year. The tax rates and tax laws used to compute the amount are those that are enacted or
substantially enacted , at the reporting date where the Company operates and generates taxable income. Management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation . It establishes provisions
where appropriate on the bias of amounts expected to be paid to the tax authorities.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and
Company intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realised or the
liability is settled , based on tax rates and tax laws that have been enacted or substantively enacted by the end of reporting period. The carrying
amount of deferred tax assets is reviewed at each reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable entity and the same taxation authority.

viii) Borrowing Cost

Borrowing costs includes interest, amortization of ancillary cost incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are
attributable to the acquisition or construction of qualifying assets are considered as a part of cost of such assets less interest earned on the
temporary investment. A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other
borrowing costs are charged to the Statement of Profit t and Loss in the year in which they are incurred.

ix) Foreign Currency Transactions

Foreign exchange transactions are recorded at the rate prevailing on the dates of the respective transaction. Exchange difference arising on foreign
exchange transactions settled during the year is recognized in the Profit t and Loss Account.

Monetary assets and liabilities denominated in foreign currencies are converted at the closing rate as on Balance Sheet date. The resultant exchange
difference is recognized in the Profit t and Loss Account.

Exchange rate differences arising on a monetary item that, in substance, forms part of the Company''s net investment in a nonintegral foreign
operation are accumulated in a foreign currency translation reserve in the Company''s financial statements until the disposal of the net investment.

Non monetary assets and liabilities denominated in foreign currencies are carried at the exchange rate prevalent on the date of the transaction.

The company has valued its Current Assets, Current Liabilities and loans in foreign currency in respect of projects in Iraq at the rate prevailing as on
30.06.1984.

x) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the
Company operates (the functional currency). The financial statements are presented in Indian rupee ('') , which is Company''s functional and
presentation currency.

xi) Lease Transactions:

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant
judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease
if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably
certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise
an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non¬
cancellable period of a lease

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar
characteristics.

3) CRITICAL ACCOUNTING IIIDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Company''s financial statements requires management to make judgement, estimates and assumptions that affect the reported
amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

4) GOING CONCERN

The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for
developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

35) Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

Company as a lessee

The Company has elected not to apply the requirements of Ind AS 116 as there is no any contract in writing, further pending litigation with the lessor
the company has treated the transactions as short-term leases for which the underlying asset is of low value. The lease payments associated with
these leases are recognized as an expense in the profit & loss account.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease
payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance lease, finance income is
recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the
Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a
sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short
term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

36) Balances in respect of Trade receivables, Loans & advances and Liabilities in most of the cases are subject to confirmations, reconciliations and
adjustments, if any.

37) In the opinion of the management, Loans & Advances and trade receivables have a value on realization in the ordinary course of the business at
least equal to the amount at which they are stated in the books of accounts.

38) In view of carried forward Business loss and unabsorbed depreciation, provision for taxation is not made in the financial statements.

39) As the Company does not fulfil the criteria specified in section 135 of the companies Act read with rule 3 of the Companies (Corporate Social
Responsibility Policy) Rule,2014 (''CSR Rules'') CSR Provisions is not applicable to the company.

40) The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company''s assets and liabilities
relate to this activity only.

41) In accordance with the Ind AS 12 "Income Taxes" issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities
should be recognised for all timing difference in accordance with the said standard. However considering the present financial position and the
requirement of the accounting standard regarding certainty/virtual certainty the same is not provided for as an asset (Net). Deferred tax asset in
relation to carried forward losses and other items is recognised/offset to the extent of deferred tax liability per the requirements of AS22 ,
accordingly there is no any impact on profit and loss account for the year .However the same will be reassessed at a subsequent balance sheet date
and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

42) Computation of Net Profit under Section 197 of the Companies Act has not been given as no remuneration is paid to Directors.

43) Additional Regulatory Informations

a) Disclosure of ratios.

b) The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties
and hence reporting requirement with respect to repayment of loan is not appplicable.

c) The Company has not borrowed any funds from banks and financial institutions and according, reporting requirement for utilisation of the same is
not applicable.

d) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time
during the financial year or after the end of reporting period but before the date when financial statements are approved.

e) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or
in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding,
whether recorded in writing or otherwise, that the Company shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company does not have any transactions with struck-off companies.

h) The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax

i) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

j) The Company does not hav any subsidiary company/ies and hence reporting requirement with respect to compliance with the number of layers
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017. is not
applicable.

k) The Company does not have any charges or satisfaction which is required to be registered with the Registrar of Companies (ROC) and hence
reporting requirement for satisfaction of charge beyond the statutory period is not applicable.

l) The company does not have any Immovable property whose Title deeds are not held in the name of the company.

m) The company has not revalued its Property, Plant and Equipment & Intengible Assets during the year.

n) The company does not have any capital work in progress for Intangible Assets under development.

o) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property.

p) The company has not applied for any Scheme of Arrangements to be approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013, hence the reporting requirement for disclosure of the same is not applicable.

q) The company does not have any investment property Hence reporting required of fair value of Investment property of the Company is not
applicable.

r) The company does not have any capital-work-in-progres, whose completion is overdue. Further there are no any projects which is temporarily
suspended.

s) The company has not borrowed any funds from banks or financial institution on the basis of Security Assets hence disclouser for the same is not
applicable.

44) Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Management monitors the return on capital. The Company adheres to a disciplined Capital Management framework in
order to maintain a strong balance sheet. The main objectives are as follows:

a) Manage interest rates and minimise the impact of market volatility on earnings.

b) Diversify sources of financing in order to manage liquidity risk.

c) Leverage optimally in order to maximise shareholder returns.

45) The previous year''s figures have been regrouped & recast wherever necessary to make them comparable.

As per our report of even date attached

For and on behalf of the Board of Directors of

Chartered Accountants Shah Construction Company Limited

Mittal and Associates
FRN 106456W

Mehul J. Shah Mahendra K. Savaliya

Hemant Bohra Chairman & MD Chief Financial

Partner DIN: 00933528 Officer

M.No. : 165667

UDIN:- 24165667BKEZEL3430

Dinesh K. Poddar Anita Vyas Sanjay D. Shah

Place : Mumbai Director Company Director

DATED: 30/05/2024 DIN: 00158597 Secretary DIN:00292226

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Mar 31, 2014

1) SHARE CAPITAL

1.1 1650 Equity Shares out of the issued, subscribed and paid up share capital were allotted in part payment of Purchase Consideration.

1.2 1250 Equity Shares out of the issued, subscribed and paid up share capital were allotted in Consideration for giving Equivalent Foreign Exchange for Purchase of Capital Goods.

1.3 Shares held by Holding Company, its Subsidiaries and Associates

The Company does not have any holding company.

1.4 Rights, Preferences and restrictions attached to Shares

(a) Equity Shares

The company has one class of equity shares having a par value of Rs. 100 each. Each shareholder is eligible for One Vote per share held. The Dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(b) Preference Share

The Preference shares are redeemable. The Face value of the preference shares is Rs. 100. These shares carry a fixed cumulative dividend of 7% p.a. 7% dividend shall be payable in the each Financial Year beginning from the 2011-12 in event of company making profit. In the event of loss or in adequacy profit in any financial year no dividend shall be paid however dividend remaining said year in which there is a loss or inadequate profit the unpaid dividend for the particular year shall be carried forward. The preference share shall be Redeemable in terms of Companies Act 1956 after 7 years form the date of Allotment being 14th May, 2011 and shall be Redeemable on 14th May, 2018 or before or after 7 years as may be agreed by passing resolution at the meeting of the preference share holders as may be required.

2. FIXED ASSETS

The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs. 13,25,393/- in respect of these plots which has been debited to Land A/c.

3. In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2014. In the opinion of the Directors, there is no likely hood of any loss for the year.

4. The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs.4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U- 1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs. 13,25,393/- in respect of these plots which has been debited to Land A/c.

5. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners..

6. In the opinion of the Directors:

(i) Current Assets, Loans, Advances and Investments have values, on realization in ordinary course of business, at least equal to the amount at which these are stated, subject to Note (iii) below.

(ii) (a) In respect of Preference Share Capital of Rs. 48.20 Crores (Previous Year Rs. 48.20 Crores) carrying a fixed cumulative dividend of 7% p.a. amounting to Rs. 3,37,40,000) (Previous Year Rs. 3,37,40,000/-), no provision is made for cumulative dividend payable in future in view of the loss incurred during the year.

(b) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

(iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt. to Govt. Deferred Payment Arrangements (DPA), Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs. 5,46,107/- (previous year Rs. 5,54,532/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

7. Additional information under Schedule VI of the Companies Act 1956:

The Company''s activity being in the nature of Engineering and Construction, other provisions Part II of Schedule VI of the Companies Act, 1956 are not applicable.

8. Related Party Disclosures:

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

a) Subsidiary Companies: NIL

b) Other related parts where control exits:-

(i) Gammon Shah

(ii) Shah Gammon Pvt. Ltd.

c) Key Management Personnel:

Mr. M. J. Shah.

Mr. S. D. Shah

Mr. Dinesh Kumar Poddar

d) Relatives of Key Management Personnel and their enterprises where transaction have taken Place.

Anchor Daewoo Industries Ltd.

Anchor Leasing Pvt. Ltd

Barindra Overseas Pvt. Ltd.

DRM Corporation

Alex Securities Pvt. Ltd.

Classic Electrical Ltd.

Good Value Financial Service Pvt. Ltd.

Real Value Leasing Pvt. Ltd.

Poddar Prints Pvt. Ltd.

Enicar Enterprises

Suvidha Vitran Private Limited

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

(ii) Transactions during the year with the Related Parties:

(a) (i) Interest free unsecured loan of Rs. NIL from Mr. M. J. Shah. Interest free unsecured Loan taken and repaid during Previous year Rs. 65,00,000 from Mr. M. J. Shah.

(ii) Interest free unsecured loan of Rs. NIL from Mr. S.D. Shah. Interest free unsecured Loan taken and repaid during Previous year Rs. 65,00,000 from Mr. S. D. Shah.

(b) Interest free Loan taken from Anchor Daewoo Industries Ltd. Rs. NIL (Previous year Rs. 6,17,65,000). Loan returned during the year Rs. 3,44,00,000 (Previous year Rs. 4,49,00,000). Balance as on 31/03/2014 is Rs. 14,48,83,773 (Previous years Rs. 17,92,83,773).

(c) Loan taken from Anchor Leasing Pvt. Ltd. Rs. 57,25,000 (Previous year Rs. 20,00,000). Loan returned during the year Rs. NIL (Previous year Rs. 3,72,42,778(Net)). Interest Rs. 4,68,596 (Previous year Rs. 5,95,426) paid thereon. Balance as on 31/03/2014 is Rs. 81,53,936 (Previous year Rs. 20,07,200).

(d) Interest free Loan taken from Barindra Overseas Pvt. Ltd. Rs. 73,00,000 (Previous year Rs.20,00,000). Balance as on 31/03/2014 is Rs 1,25,07,715 (Previous year Rs. 52,07,715).

(e) Advance of Rs. 10,00,000 (Previous year Rs. NIL) received from M/s DRM Corporation during the year. Balance as on 31/03/2014 is Rs. 10,00,000 (Previous year Rs. NIL).

(f) Purchased Security cabin of Rs. 40,000 (Previous year Rs. NIL) from M/s. Suvidha Vitaran Pvt. Ltd.

(g) Miscellaneous Works (Sales) transaction of Rs. 2,54,540 (Previous year Rs. 3,79,760 and purchase of Rs. NIL (Previous year Rs. 76,914) was carried out with M/s Alex Securities Pvt. Ltd.

(h) Loan taken from Classic Electrical Ltd. Rs. 1,73,00,000 (Previous year Rs. 20,00,000) and Interest Rs.10,35,934 (Previous Year Rs.7,452) paid thereon. Balance as on 31/03/2014 is Rs. 2,02,39,048 (Previous Year Rs 20,06,707).

(i) Loan taken from Good Value Financial Services Pvt. Ltd. Rs. 65,00,000 (Previous year Rs. 1,10,00,000) and Interest Rs. 20,53,974 (Previous Year Rs. 28,932) paid thereon. Balance as on 31/03/2014 is Rs. 1,93,74,616 (Previous Year Rs. 1,10,26,039).

(j) Interest free Loan taken from Poddar Prints Pvt. Ltd. Rs. NIL (Previous year Rs. 30,00,000). Loan Returned during the year Rs. 30,00,000 (Previous Year Rs. NIL) Balance as on 31/03/2014 is Rs. NIL (Previous Year 30,00,000).

(k) Loan taken from Real Value Leasing Pvt. Ltd. Rs. 60,00,000 (Previous Year 1,15,00,000) and Interest Rs. 20,57, 897 (Previous Year Rs. 30,247) paid thereon. Balance as on 31/03/2 014 is Rs 1,93,79,329 (Previous Year 1,15,27,222).

(l) Leave & License fees received from M/s. Enicar Enterprises of Rs. 39,00,000 (Previous year Rs. 39,00,000). Balance as on31/03/2014 is Rs. 3,28,650 (Previous year Rs. 12,46,294).

9. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company''s assets and liabilities relate to this activity only.

10. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

11. Auditors Remuneration:

Audit Fees Rs.50,000/- (Previous Year Rs. 33,000/-)

For Taxation Matters Rs. 10,000/- (Previous year Rs. 10,000/-)

For Other Matters Rs. 42000/- (Previous year Rs. 16,500)

12. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

13. Figures for the Previous Year have been regrouped, reclassified and restated wherever necessary to conform to the current year presentation.

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Mar 31, 2013

1 In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2013. In the opinion of the Directors, there is no likely hood of any loss for the year.

2(a) The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs.13,25,393/- in respect of these plots which has been debited to Land A/c.

(b) The sell of half of Company''s land at Amboli, Andheri (west), Mumbai, bearing Plot Nos. 20,21,21A,26 and 28(part) to Shri. Damji L. Shah & Shri. Jadavji L.Shah as recorded in Agreement dated 18/04/1985 was terminated during Financial Year 2010-11.

3. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners..

4. In the opinion of the Directors :

(i) Current Assets, Loans, Advances and Investments have values, on realization in ordinary course of business, at least equal to the amount at which these are stated, subject to Note (iii) below.

(ii) (a) In respect of Preference Share Capital of Rs. 48.20 Crores (Previous Year Rs. 48.20 Crores) carrying a fixed cumulative dividend of 7% p.a. amounting to Rs.

3,37,40,000) (Previous Year Rs. 3,37,40,000/-), no provision is made for cumulative dividend payable in future in view of the loss incurred during the year.

(b) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

(iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Company''s assets & claims situated in Iraq aggregate to:

Current Assets Rs.10,18,52,400 Valued at rate as on 30.06.1984

Fixed Assets Rs. 8,97,58,355 At costs as per books

------------------

Rs.19,16,10,755 ===========

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt. to Govt. Deferred Payment Arrangements (DPA), Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2013 are not available due to United Nations Embargo.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs. 5,54,532/- (previous year Rs. 5,46,107/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

5. Additional information under Schedule VI of the Companies Act 1956 :

The Company''s activity being in the nature of Engineering and Construction, other provisions Part II of Schedule VI of the Companies Act, 1956 are not applicable.

6. Related Party Disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(ii) Transactions during the year with the Related Parties:

(a) (i)Interest free unsecured loan of Rs.65,00,000 (Previous year Rs.35,00,000) was taken & repaid during the year to Mr. M.J.Shah.

(ii) Interest free unsecured loan of Rs.65,00,000 (Previous year NIL) was taken & repaid during the year to Mr. S.D.Shah.

(b) Interest free Loan taken from Anchor Daewoo Industries Ltd. Rs. 6,17,65,000 (Net) (Previous year Rs.15,29,00,000(Net)). Balance as on 31/03/2013 is Rs.17,92,83,773 (Previous years Rs. 16,24,18,773). Interest paid during previous year was Rs. 1,05,76,415.

(c) Loan taken from Anchor Leasing Pvt. Ltd. Rs. 20,00,000 (Previous year Rs. 1,20,00,000). Loan returned during the year Rs. 3,72,42,778 (Previous year Rs. 59,62,18,411(Net)). Interest Rs.5,95,426 (Previous year Rs. 74,60,100) paid thereon. Balance as on 31/03/2013 is Rs.20,07,200 (Previous year Rs. 3,67,14,095).

(d) Interest free Loan taken from Barindra Overseas Pvt. Ltd. Rs. 20,00,000 (Previous year Rs.30,00,000). Balance as on 31/03/2013 is Rs 52,07,715 (Previous year Rs. 32,07,715). Interest paid during previous year was Rs. 2,30,795.

(e) Interest free unsecured loan of Rs.NIL (Previous year Rs. 4,50,000) was taken from M/s DRM Corporation during the year.

(f) Interest free unsecured loan of Rs.NIL (Previous year Rs. 20,00,000) was taken from M/s Alex Securities Pvt. Ltd during the year.

(g) Miscellaneous Works (Sales) transaction of Rs. 3,79,760 (Previous year Rs. 4,00,000) and purchase of Rs. 76,914 (Previous year Rs. NIL) was carried out with m/s Alex Securities Pvt. Ltd.

(h) Loan taken from Classic Electrical Ltd. Rs. 20,00,000 (Previous year Rs. NIL) and Interest Rs.7,452 paid thereon. Balance as on 31/03/2013 is Rs 20,06,707.

(i) Loan taken from Good Value Financial Services Pvt. Ltd. Rs. 1,10,00,000 (Previous year Rs. NIL) and Interest Rs.28,932 paid thereon. Balance as on 31/03/2013 is Rs 1,10,26,039.

(j) Interest free Loan taken from Poddar Prints Pvt. Ltd. Rs. 30,00,000 (Previous year Rs. NIL). Balance as on 31/03/2013 is Rs 30,00,000.

(k) Loan taken from Real Value Leasing Pvt. Ltd. Rs. 1,15,00,000 and Interest Rs.30,247 paid thereon. Balance as on 31/03/2013 is Rs 1,15,27,222.

(l) Leave & License fees received from M/s. Enicar Enterprises of Rs. 39,00,000 (Previous year Rs. 39,00,000). Balance as on31/03/2013 is Rs. 12,46,294 (Previous year Rs. 35,10,000).

7. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company''s assets and liabilities relate to this activity only.

8. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS- 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

9. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

10. Figures for the Previous Year have been regrouped, reclassified and restated wherever necessary to conform to the current year presentation.

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Mar 31, 2012

1.1 1650 Equity Shares out of the issued' subscribed and paid up share capital were alloted in part payment of Purchase Consideration

1.2 1250 Equity Shares out of the issued' subscribed and paid up share capital were alloted in Consideration for giving Equivalent Foreign Exchange for Purchase of Capital Goods.

1.3 Shares held by Holding Company' its Subsidiaries and Associates

The Company does not have any holding company.

1.4 Rights' Preferences and restrictions attached to Shares

la) Eautv Shares

The company has one class of equity shares having a par value of Rs. 100 each. Each shareholder is eligible for One Vote per share held. The Dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts' in proportion to their shareholding.

(b) Preference Share

The Prefernce shares are redeemable. The Face value of the prefernce shares is Rs. 100. These shares carry a fixed cumulative dividend of 7% p.a. 7% dividend shall be payble in the each Finanicial Year beginning from the 2011-12 in event of company making profit.In the event of loss or in adquacy profit in any finanicial year no dividend shall be paid however dividend remaining said year in which there is a loss or inadiqute profit the unpaid dividend for the particular year shall be carried forward. The preference share shall be Reedamble in terms of Companies Act 1956 after 7 years form the date of Allotment being 14th May'2011 and shall be Reedamble on 14th May'2018 or before or after 7 years as may be agreed by passing resoulation at the meeting of the preference share holders as may be required.

Notes:

1 The Company had sold Plot No. M-l & M-2 of the land at Amboli to M/s. Akruti for Rs. 4'00'000/- as recorded in Agreement dated 18th August' 1980' Plot No. U-l & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8'00'000/- as recorded in Agreement dated 15th April' 1981 and Plot No. K' L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11'94'000/-as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property' the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli' Andheri.

2 The Sell of half of the land at Amboli' Mumbai bearing plot nos. 20'21' 21 A' and 28 (part) to Shri Damji L. Shah & Shri Jadavji L. Shah as recorded in agreement dt. 18th April' 1985 was terminated during the financial year 2010-2011.

2 In Shah Skyline Joint Venture' the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2011. In the opinion of the Directors' there is no likely hood of any loss for the year.

3(a) The Company had sold Plot No. M-l & M-2 of the land at Amboli to M/s. Akruti for Rs. 4'00'000/- as recorded in Agreement dated 18th August' 1980' Plot No. U- 1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8'00'000/- as recorded in Agreement dated 15th April' 1981 and Plot No. K' L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11'94'000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property' the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli' Andheri.

(b) The sell of half of Company's land at Amboli' Andheri (west)' Mumbai' bearing Plot Nos. 20'21'21A'26 and 28(part) to Shri. Damji L. Shah & Shri. Jadavji L.Shah as recorded in Agreement dated 18/04/1985 was terminated during Financial Year 2010-11.

4. The Company has not obtained confirmation for Debtors' Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans' deposits & Joint Venture Partners..

5. In the opinion of the Directors :

(i) Current Assets' Loans' Advances and Investments have values' on realization in ordinary course of business' at least equal to the amount at which these are stated' subject to Note (iii) below.

(ii) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Company's assets & claims situated in Iraq aggregate to:

Current Assets Rs.l0'18'52'400 Valued at rate as on 30.06.1984 Fixed Assets Rs. 8'97'58'355 At costs as per books Rs.19'16'10'755

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt' to Govt. Deferred Payment Arrangements (DPA)' Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets' Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2012 are not available due to United Nations Embargo.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs.5'46'107/- (previous year Rs. 5'46'107/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets' expected settlements with creditors' the projects under negotiation as well as the future prospects of the company.

6. Additional information under Schedule VI of the Companies Act 1956 :

The Company's activity being in the nature of Engineering and Construction' other provisions Part II of Schedule VI of the Companies Act' 1956 are not applicable.

7. Related Party Disclosures :

As per Accounting Standard 18' the disclosures of transactions with the related parties are given below: (i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(ii) Transactions during the year with the Related Parties:

(a) Interest free unsecured loan of Rs.35 Lakhs was taken & repaid during the year to Mr. M.J.Shah during the year..

(b) Loan taken from Anchor Daewoo Industries Ltd. Rs. 15'29'00'000 (Net) and Interest Rs. 1'05'76'415 paid thereon. Balance as on 31/03/2012 is Rs. 16'24'18'773

(c) Loan Returned to Anchor Leasing Pvt. Ltd. Rs. 59'62'18'411 (Net) (Previous year Rs. 25'65'000) and Interest Rs.74'60'100 (Previous year Rs. 4'26'28'143) paid thereon. Balance as on 31/03/2012 is Rs.3'67'14'095 (Previous year Rs. 62'62'18'416).

(d) Loan taken from Barindra Overseas Pvt. Ltd. Rs. 30'00'000 and Interest Rs.2'30'795 paid thereon. Balance as on 31/03/2012 is Rs 32'07'715

(e) Interest free unsecured loan of Rs.4'50'000 was taken & repaid during the year to m/s DRM Corporation during the year..

(e) Interest free unsecured loan of Rs.20'00'000 was taken & repaid during the year to m/s Alex Securities Pvt. Ltd. during the year.

(f) Miscellaneous Works (Sales) transaction of Rs. 4'00'000 was carried out with m/s Alex Securities Pvt. Ltd..

8. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company's assets and liabilities relate to this activity only.

9. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However' considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty' the same is not provided for as an asset (Net). However' the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

10. Auditors Remuneration:

Audit Fees Rs.30'000/- (Previous Year Rs. 20'000/-)

For Taxation Matters Rs. 10'000/- (Previous year Rs. 10'000/-)

11. Computation of Net Profit under Section 349 of the Companies Act has not been given' as no remuneration is paid to Directors.

12. Figures for the Previous Year have been regrouped' reclassified and restated wherever necessary to conform to the current year presentation..

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Mar 31, 2010

1. The Company is a partner in the following partnership firms.

Nome of the Partnership Name of the Partners Share in P/L

M/s.Gammon Shah (i) Gammon India Ltd. 50%

(ii) Shah Const. Co. Ltd. 50%

During the year the Company has Written Off its Capital contribution of Rs. 25,000/-

2. In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2010. In the opinion of the Directors, there is no likelyhood of any loss for the year.

3(a) The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/-as recorded in Agreement dated 15th April, 1981 and Plot No. K, L&T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-1 2-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri.

(b) The company had sold half of the land atAmboli, bearing plot nos. 20, 21, 21 A, 26, 28 (part) to Shri Damji L. Shah & Shri Jadavji L. Shah for Rs. one crore as recorded in agreement dt. 18th April, 1985. The Purchasers paid full consideration of Rs. one crores directly to Dena Bank in settlement of companys entire dues to the Bank whereby, the pari pasu mortgage of the aforesaid land with Dena Bank was redeemed. The possession of the said half property was handed over to the purchasers on 18th April, 1985 as per clauses (2) of the aforesaid agreement dated 18th April, 1985. Pending completion of formalities of the sold property, the amount received from Shri Damji L. Shah & Shri Jadavji L. Shah is shown as advance payment towards the said half property.

4. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners. See Note No.2 above.

5. In the opinion of the Directors :

(i) Current Assets, Loans, Advances and Investments have value on realization in ordinary course of business at least equal to the amount at which these are stated.

(ii) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

iii) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Companys assets & claims situated in Iraq aggregate to :

Current Assets Rs.l 0,18,52,400 Valued at rates of

Fixed Assets Rs.8,97,58,355 At costs as per books

Rs.l 9,16,10,755

iv) In respect of the outstanding dues of the Banks under the Deferred Payments, Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds 1o our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs.5,46,107/ (previous year Rs. 5,46,107/-) are considered good.

(vi) The Company is a going concern inspite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

6. Additional information under Schedule VI of the Companies Act 1 956 : The Companys activity being in the nature of Engineering and Construction the provisions of para 4C of part II of Schedule VI of the Companies Act, 1956 are not applicable.

7. The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2010 are not available due io United Nations Embargo.

2) Transactions carried out with related parties referred in (1) above.

Nature of Transaction Related Parties.

Partners Capital A/c. Written Off. Rs. 25,000/- Gammon Shah

Shares Investment Written Off. Rs. 25,000/- Shah Gammon Pvt. Ltd.

10. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all companys assets and liabilities relate to this activity only.

11. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

12. Auditors Remuneration :

As Audit Fees Rs. 20,000/- (Previous Year Rs. 20,000/-)

13. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

14. Figures for the Previous Year have been regrouped wherever necessary.

15. BALANCESHEET ABSTRACT AND COMPANYS GENERAL PROFILE (Submitted in terms of Part IV of Schedule VI to the Companies Act, 1956)

III. Position of Mobilisation & Deployment of Funds (Amounts in Rs. 000)

IV Performance of the Company (Amount in Rs. 000)

V. Generic Names of three Principle Services of the Company (as per monetary terms)